Biden Gives Samsung $6.4 Billion For Texas Semiconductor Plants

The Biden administration has announced a $6.4 billion agreement with Samsung to help build new semiconductor chip plants in Texas. This deal is the latest investment under the bipartisan CHIPS and Science Act, signed by Biden in 2022.

Samsung is expected to invest $40 billion in the region, which includes constructing new plants in Taylor, northeast of Austin, and expanding the company's existing facility in Austin. This investment follows a $6.6 billion commitment to build a new semiconductor facility in Arizona, announced earlier this month.

President Biden stated, “This announcement will unleash over $40 billion in investment from Samsung, cementing central Texas’s role as a state-of-the-art semiconductor ecosystem. It will create at least 21,500 jobs and leverage up to $40 million in CHIPS funding to train and develop the local workforce. These facilities will support the production of some of the most powerful chips in the world, essential for advanced technologies like artificial intelligence and crucial for bolstering U.S. national security.”

During a conference call with reporters, Commerce Secretary Gina Raimondo described the new facilities as “massive,” with the first being the size of 11 football fields.

“We're saying for the first time ever, Samsung can conduct in the United States of America core research and development, support the future and manufacturing at scale and advanced packaging all in Texas,” she added.

Semiconductor chips are crucial components used in a variety of everyday items, including cell phones, bank ATMs, pacemakers, and more. The semiconductors manufactured in Taylor will be utilized in communications and for the automotive and defense industries, according to the Biden administration. The new plants will also include facilities dedicated to both research and development and packaging, crucial for shipment. Currently, many chips made in the U.S. must still be sent to Taiwan for packaging.

“The chipmaking capabilities these resources will enable at Samsung, including advanced packaging and research and development will help the U.S. reclaim its leadership role in the critically important semiconductor industry,” said Sen. John Cornyn (R-Texas) in a statement. “I look forward to seeing more Texas-led advancements in the years to come,” 

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